Why you should start your Exeter lease extension

Why you should start your Exeter lease extension today:

A Exeter leasehold property depreciates with the years remaining on the lease.

Exeter leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Exeter tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Exeter you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Exeter flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay

An extended lease is almost the same value as a freehold

Leasehold premises in Exeter with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions may decide not to lend on a short lease

Banks and building societies are really clamping down as regards to properties in Exeter with short leases. For example you might discover that their lending requirements are stricter and that they alter interest rates depending on how many years are left on the lease. Some may even refrain from lending completely, so where you needed to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus limiting the amount of potential buyers.

What makes us experts in Exeter lease extensions?

The conveyancers that we work with procure Exeter lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Exeter Lease Extension Example Cases:

Arthur, Exeter, Devon

In 2014 Arthur, started to get near to the 80-year mark with the lease on his garden flat in Exeter. In buying his property two decades ago, the unexpired term was of little bearing. Fortunately, he realised he needed to take steps soon on Extending the lease. Arthur extended the lease at the eleventh hour last August. Arthur and the freeholder via the management company subsequently settled on sum of £5,500 . If he had missed the deadline, the figure would have escalated by at least £875.

Exeter case:

Last Autumn we were called by Mr S Garcia , who moved into a first floor flat in Exeter in October 2011. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Similar properties in Exeter with a long lease were in the region of £206,200. The average amount of ground rent was £60 collected per annum. The lease lapsed in 2082. Considering the 56 years remaining we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.

Exeter case:

Last year we were approach by Dr N Lefebvre , who owned a newly refurbished flat in Exeter in November 1998. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical flats in Exeter with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected monthly. The lease terminated on 27 April 2102. Having 76 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.